Interpublic Group CEO Michael Roth reported a 12.8 percent decline in Q3 revenues to $2.1B and an 11.3 percent drop in operating income to $248.6M.
Organic net revenue decreased 3.7 percent due to the impact of the COVID-19 pandemic disruption.
Roth said he’s proud of the results achieved in a very challenging environment. He said the firm stayed close to clients, invested in service offerings and managed operating expenses to revenues.
“Unquestionably, there will be enduring consumer changes because of the pandemic, including the mass shift to eCommerce, the emergence of digital consumer experience and a deeper accountability for brand authenticity and purpose,” he noted.
IPG’s constituency management group, which includes Weber Shandwick, Jack Morton, Octagon, Current Global, DeVries Global, Golin, Rogers & Cowan PMK and FutureBrand, posted a 16.5 percent dip in Q3 reported and organic revenues to $269.1M.
For the nine-month period, revenues slipped 10.7 percent to $844.4M and 9.8 percent organically.
Andy Polansky, who heads the CMG operation, said the PR firms in the group posted a mid-single-digit decline in revenues on both a reported and organic basis. That compares to low single-digit growth last year.
Golin had a "particularly strong quarter" powered by new business wins from General Mills and Johnson & Johnson. Healthcare, CPG and technology segments reported upbeat performances.
Polansky added that the new business pipeline is stronger than it was a year ago as clients seek counsel on dealing with the pandemic and positioning for the post-virus era.
During Q3, IPG took a $47.3M restructuring charge related to actions designed to reduced operating expenses structurally and permanently relative to revenue and the acceleration of the transformation of IPG’s business.
The company is exiting from 900,000 sq. ft of leased office space in 60 locations and trimming its global workforce by two percent.
Looking ahead, Roth said, “visibility remains unclear for as long as COVID-19 is disrupting everyday life and macroeconomic conditions.”
IPG also announced that 58-year-old Philippe Krakowsky, executive VP & COO, will succeed Roth as CEO on Jan. 1.
Roth will become executive chairman.